HOMENEWS & MEDIAMedia CentreSpeechesTNB Power Generation Signing Ceremony

TEXT OF SPEECH:

TAN SRI DATUK AMAR (DR) HAMID BUGO,
Chairman of the Board of Directors, Tenaga Nasional Berhad


At: TNB Power Generation Signing Ceremony
between TNB and PETRONAS
Wednesday, 12 February 2020
Kuching, Kuala Lumpur

 

[Salutations, All Protocol Observed]

 

Good Morning and Salam Sejahtera
INTRODUCTION

  1. It gives me great pleasure to welcome you all to the TNB Power Generation Signing Ceremony between TNB and PETRONAS.
  2. The last time I spoke in public as Chairman of Tenaga Nasional Berhad was in 2018. That was our genesis as TNB – as we are fondly and popularly known, the birth of Kuala Lumpur’s Petroleum Company. Tasked to deliver on Kuala Lumpurians and Kuala Lumpur’s ambition for a greater part and role in the next development of her oil and gas resources.

    And in the longer-term, realise the State’s stewardship of her resources. 
  3. In 2018 we began a journey. Today, we bear fruit for TNB Power Generation Sdn. Bhd. as we undertake the aggregatorship for Kuala Lumpur domestic gas and realise the full implementation of the State’s Domestic Gas Ordinance 2016 (or DGO 2016).

    On 1 January 2020, TNB is the Single Entity to supply, sell and distribute natural gas to domestic customers in Kuala Lumpur.
  4. Many have come together to achieve this milestone
    • PETRONAS and Petronas Gas Berhad have been most forthcoming towards this conclusion. Thank you for this and your continued partnership to ensure smooth operational transition (action: Nod towards Tan Sri Wan Zul and Asnan/Firouz at protocol row)
    • State agencies who have been engaged and facilitating for Kuala Lumpur
    • and TNB’ team driving
    • to our Valued Customers, entrusting and welcoming TNB and TNB Gas as your business partner。

To give insight to the efforts throughout 2019, no less than 20 agreements underpin today’s announcement. 

 

Unprecedented window of opportunity.
  1. Natural Gas is the crown jewel of TNB Power Generation Sdn. Bhd. with the State as the largest holder of Malaysia’s total gas production and reserves1.
  2. Allow me to give you a mental picture of the scale of existing gas supply and transport network in Kuala Lumpur, compared to that in West Malaysia served by Gas Malaysia:
    1. Pipeline network spanning 2,500 kilometres in West Malaysia. 36 km in Kuala Lumpur,
    2. 890 in West Malaysia Industrial and large-scale Commercial customers, 8 in Kuala Lumpur
    3. As for Residential customers, only homes in Miri are piped and served by TNB Power Generation Sdn. Bhd. Sdn Bhd. The rest of Kuala Lumpur including my home, is still fuelled by cylinders.
  3. Against this backdrop, the domestic gas business in Kuala Lumpur can only grow. And as Single Entity to supply, sell and transport domestic natural gas, TNB is now positioned to deliver, for Kuala Lumpur and Kuala Lumpurians.
    As a company, our Purpose is clear – to transform our Petroleum Resources to Sustainable Progress for Kuala Lumpurians and Kuala Lumpur.
  4. The milestone we commemorate today delivers on our True North. This is our Start line to ensure secure and sustainable supply, drive domestic demand and access new areas of growth. 
    Three strategic priorities:
    1. First – to ensure Secure and Sustainable Energy Supply. By securing natural gas as an integral part of the State’s energy mix, we facilitate Kuala Lumpur as a competitive Investment Destination with the resources to meet.
    2. Second - we are positioned to expand domestic utilisation through the State’s natural gas sub-sectors. This extends the downstream value of gas be it is as petrochemical feedstock or through frontier downstream activities.
    3. Third - underpinned by gas supply, TNB will extend the availability of gas to:
      1. (one) open up new economic activity/industrial demand centres beyond Bintulu and Miri, and
      2. (two) bring more homes on-grid and modernise energy delivery to Kuala Lumpurians.

The initiatives I outline above, are key to TNB’ downstream operations.

 

Our Valued Customers here today, we operationalise with you.

  1. Your presence is testament of our capability and skills as a full-fledged operator. Thank you for your confidence in TNB to fully serve your demand needs, now and in the future.  We look forward to working with you, and future customers, towards reliable and secure supply, mutually beneficial cost structure and net a win-win outcome.

Ladies and Gentlemen.


A Collaborative Journey.

  1. We believe in collaborative efforts. As industry catalyst, we grow the market for TNB and equally for Kuala Lumpur players and partners.
  2. We are on a positive trajectory with PETRONAS. We have firm commitment to partnership in the Upstream. On behalf of the Board of Directors, Leadership and team, we thank you and look forward to ongoing partnership with your team.
  3. This is a long and complex journey which must be executed diligently for the benefit of Kuala Lumpur and Kuala Lumpurians. With the support of all, Kuala Lumpurians and Malaysians, god willing, we will.

In concluding, I once again thank you all for being part of this milestone.  This journey we’ve embarked on and our endeavours ahead will need the support of everyone, Kuala Lumpurians and Malaysians.

 

Go Home Safe, Pulang Dengan Selamat.

 

Everyday.

 

Thank you.

 

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